Cardenas Real Estate Agent Blog - Gran Canaria

Liable to this tax are the persons receiving an inheritance, bequest or legacy and not having have their usual residence in Spain, as well as residents in Spain if the deceased person did not have his/her usual residence in Spain.

The competent Tax authority is the Special Branch of the Tax Authority in Madrid, i.e. depending on the State Tax Agency (AEAT), whereas for residents in Spain, the competent tax authority is the regional tax authority.

It is important to know that the filing deadline for acquisitions resulting from death is SIX MONTHS from the date of death.  For the case that the delay in obtaining the necessary documents from abroad (i.e. Certificate of Inheritance) might make it difficult to comply with the deadline, it is advisable to apply for an extension of the six months delay, but that must be done within FIVE MONTHS from the date of death.

How to pay the tax:

It is possible and advisable to pay the tax using the self-assessment Form 652 “Inheritance Tax Simplified Return”.  A Tax Identification Number (NIF) and tax identification labels provided by the Tax Agency are necessary. Before requesting them, Non-resident foreign national taxpayers must apply for a Foreign National’s Identity Number (N.I.E.).

Main documents to be presented

• Deed of Acceptance of the Inheritance (certified and simple copy), or, failing this, an Inventory of Assets and Heirs, in duplicate.
• Death Certificate.
• Certificate from the General Registry of Wills and Testaments.
• Copy of the Will or the Declaration of Heirs.
• Copy of the IBI (Property Tax) bill

besides any other relevant document about the inheritance assets (insurance, bank statement, car documentation etc.)

How high can be the Inheritance Tax? It is not as high as most people imagine. It depends mainly on the value of the estate and the degree of relationship with the deceased, and accessorily on the previous fortune of the inheritors too. The rate is progressive and varies from 7,65 % up to a maximum of 34% applicable to an estate over 800.000 Euros approximately, though in the case of remote relatives (cousins or similar) or non-relatives at all, the final amount could be multiplied by 2 or more (up to 2,4).

The tax is calculated on each inheritance share, which means that if one person only inherits the whole of the estate, he/she will pay a higher rate than if several persons share the inheritance.  Regretfully the tax free amount for next of kin  (spouse, children) is quite low (not quite 16.000 Euros) and has not been updated for a number of years.  Hopefully it will be increased in the near future.

A practical example:

A father leaves to his 3 children a house worth 200.000 Euros and 3.000 Euros in the bank.  Each child will pay approx. 5.426 Euros inheritance tax. The total tax amount (3 shares) will be approx. 16.280 Euros, which means an average rate of 8,02% on the total value of the estate.

If the same person leaves only one child to inherit, the inheritance tax to be paid will be approx. 30.180 Euros, which means a rate of 14,87%.

There are Agreements to avoid double taxation between Spain and many countries, and according to those, Inheritance tax to be paid in Spain for assets situated on Spanish territory is liable to be deductible in the country of residence.

Non-resident Inheritance taxpayers must appoint a tax representative.  It is most important to choose a serious and experienced person or legal person. Cardenas Real Estate has a large experience in dealing with inheritance matters and will provide you with a professional assistance and help, from the very first moment, providing exact information as to the documentation (including from foreign authorities) required, helping to obtain the NIE and NIF, assisting you with the signature of the Deed of Acceptance of Inheritance at a Spanish Notary public, preparing the tax returns and generally taking care of all necessary steps until the inherited assets including real estate are effectively transferred to the inheritors.

By Daniel García Chagrin (Lawyer & Tax Advisor) at Cardenas Real Estate.

Cardenas Real Estate                          Brian & Barbara, Manchester, England    
Av. Tomas R. Bosch,
6-Apt.
Costa Rica, 1
35130 Puerto Rico,
Gran Canaria                                                                
España

2nd February 2008.
 
Reference: Purchase of Apartment, Puerto Rico.
 
F.A.O. Leonor Martin Sanchez (Directora Sucursal)
 
Dear Leonor.
 
We hope you and your family are keeping well. We wish to thank you personally for your professional way in which you helped us to purchase our much-wanted apartment in Puerto Rico.

From our first meeting we knew we were in good hands to oversee all the important things from setting up a bank account and organizing all the legal aspects including our visit to the Notary, all of which could not have been made easier and more assuring without your experience and friendly manor in overseeing things.
Your continuous effort was second to none in finding our apartment, we just could not see where you got your energy from. You are and always will be an absolute “Star” in our minds.

We would also like to say that Cardenas Real Estate will always be a recommendation from us to friends or in fact anyone we meet who is looking to buy property in Gran Canaria.
We just cannot thank you and all of the staff enough.
Looking forward to see you again week commencing 17th March 2008.
 
Best Regards
 
Yours sincerely
 
Brian & Barbara (Manchester, England)

More testimonials here.

If you want to know where to go for the best holiday, follow the lead of your local travel agent, and if one’s opinion doesn’t sway you, 1,200 of them should give you a very convincing lead.

Gran Canaria is very proud to have been chosen as the venue for the 2008 ABTA (Association of British Travel Agents) annual conference, beating off competition from Tunisia. The prestigious event will take place on October 7, 8 and 9 in the Maspalomas Conference Centre. The centre at Meloneras, just 700 metres from the beach, has a stunning architectural design and can hold 3,000 people in it’s series of halls and meeting rooms.

The Gran Canaria tourist board are rolling out the red carpet and has donated 200 free hotel rooms for delegates. Many of the representatives from Britains top travel firms, will arrive a few days before the conference and enjoy the islands hospitality and a chance to explore. Decisions and impressions made at this conference will shape the tourism market for 2009, and Gran Canaria will use it as a showcase to keep visitors flowing in.

Maspalomas is sure to impress them with it’s golf course and rolling sand dunes, no wonder so many people chose to invest in a holiday home there. Cardenas Real Estate specialise in Maspalomas and the surrounding resorts of Puerto Rico, Mogan and Arguineguin and has some great new additions to it’s Mapalomas properties including villas, bungalows and apartments.